The European Central Bank permitted Mediobanca - Banca di Credito Finanziario SpA to implement its own internal risk management systems to measure capital requirements for corporate credit risk.
Mediobanca said the ECB also expressed approval for the gradual implementation of so-called advanced internal ratings-based models in business segments other than corporate. The approval will take effect March 31.
The Italian lender said the change in model would reduce its risk-weighted asset density to just over 60%, equivalent to a reduction in risk-weighted assets of about €5 billion and an increase of around 140 basis points to the common equity Tier 1 ratio. It added that this would give it the space for "more robust growth as indicated in the three-year business plan."
The CET1 ratio measures the highest-quality capital as a share of risk-weighted assets, or total assets as adjusted for their level of risk.
